Kyrgyzstan may eliminate early loan repayment fines, as proposed by a draft law submitted by the National Bank and Cabinet of Ministers for amendments to the Civil Code, media reports.
The submission aims to abolish the imposition of fees, penalties, and fines for early repayment of a loan or leasing financing.
Currently, commercial banks regulate this issue, and clients must inform the institution of their intention to repay the loan earlier than the deadline to avoid penalties imposed by financial and credit institutions.
The proposed changes would also extend to leasing payments, previously not covered under the Civil Code's clause on early repayment.
Reportedly, the document was created to ensure that regulatory and legal acts align with the Constitutional Law "On the National Bank" and the Law "On Banks and Banking Activities."
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